The Nashville-based healthcare technology company also recorded total revenue of nearly $700 million.
Change Healthcare reported a net loss of nearly $59 million in Q1 2021, attributed largely to the negative impact of the coronavirus disease 2019 (COVID-19) pandemic on the business model, according to the company's latest earnings results released Wednesday afternoon.
Change Healthcare LLC, a joint venture previously held by McKesson that Change purchased in early March, delivered a net income of nearly $72 million and an adjusted net income of $141.5 million.
The Nashville-based healthcare technology company also recorded total revenue of nearly $700 million, an adjusted net income of $81.2 million, and an adjusted EBITDA of $196.9 million.
In a phone interview with HealthLeaders after Change's earnings were released, CEO Neil de Crescenzo said the company benefited from an uptick in utilization rates during the month of June, which contributed to a revised outlook for Q2 2021.
De Crescenzo added that the company is still wary of uncertainties related to the spread of the virus as it heads into the fall and has an aim to return to "somewhat normal" metrics by early spring 2021.
"As a company, we obviously can't determine the entire demand curve in the U.S. healthcare system, but what we've tried to do and what we've been clear with investors, analysts, and others, is that we expect to get back to what would have been typical in the market towards the end of our fiscal year, which is in March," he said. "[By spring] of next year, we think things will be back to at least somewhat normal, in the sense of pre-COVID, because we think we'll be pretty much through the flu season largely and, hopefully, we'll have a vaccine that's going to be distributed in early next year."
Change's solutions revenue was $648.4 million, down $55 million, though its joint venture generated solutions revenue of $797.1 million during the quarter.
The company's net cash provided by operating activities was $169.1 million during the quarter and its free cash flow topped $102 million.
Change repaid $250 million, the entirety of its outstanding balance under its revolving credit facility.
Forward looking, Change expects its solutions revenue to be in the range of $670 million to $690 million in Q2.
Additionally, Change expects to see the impact from the pandemic have "gradual improvement throughout the remainder of the fiscal year as healthcare utilization trends improve."
For complete financial information, review Change Healthcare's filing with the Securities and Exchange Commission.
Editor's note: This story has been updated with commentary from Change Healthcare CEO Neil de Crescenzo.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.